We understand that Brexit brought with it may new changes to the way you process your accounts. There are now brand-new changes in processing depending on whether the business is in the UK, Ireland, or Northern Ireland.
We have updated the programme to ensure that we keep up to date with these changes, and we have also ensured that we are providing as much information to you as possible. We want to help you get a better understanding of these changes.
This blog will give a quick overview, as well as link to our great Help Centre, so you can view articles on more information.
Overview of Changes
UK
Importing and exporting goods from the EU will be treated the same as imports from the Rest of the World.
Imported goods worth under £135 will be liable for domestic VAT, rather than import VAT, and VAT is paid for at the point of sale by the consumer.
There are no changed to VAT rules for services.
You will need to state whether your item is a ‘goods’ or ‘service’ within each invoice.
Trading goods and services with NI will be treated slightly different. VAT will be treated still as domestic sales and purchases, and these contacts will be identified in the system automatically by their postcode.
You may wish to use Postponed Accounting.
You can find out more here.
Northern Ireland
Again, businesses in NI are identified by their business postcode.
Trade in goods with the EU will still fall under EU VAT rules, and VAT no. will be identified with the prefix ‘XI’. This VAT no. can be added to the ‘notes’ section of your invoices.
Buying or selling goods with GB businesses fall under UK VAT rules, with your VAT no. having a GB prefix.
You can find out more here.
Ireland
Northern Irish contacts will be identified by their postcode, so you will need to ensure it is correct, with the prefix ‘BT’. NI VAT no. will start with the prefix ‘XI’. There will be no changes to how this is processed, however.
Imports and exports of goods from Britain will be treated the same as the Rest of the World.
You may wish to use Postponed Accounting.
You can find out more here.
Postponed accounting
Postponed Accounting has been introduced from January to help with cashflow following the changes brought by Brexit.
You can declare and recover VAT in your VAT Return, rather than upfront.
For Irish businesses, Revenue have made some changed to the Return of Trading Details form to include this.
Postponed Accounting can be used for all Rest of World imports.
You must choose to use Postponed accounting for all your imports, or none at all.
You can read more about Postponed Accounting here for Irish businesses, and here for UK businesses.
VAT Rate Guide
For UK Businesses, along with the changes we have made to support you through Brexit, we have also updated our VAT Rate Guide. If you are unsure of the VAT Rate needed for your invoices, you can follow this guide to ensure it is processed correctly. It will also give you information on where to find the transaction in your VAT Return. You can try it out here.
Support
We are still here for you if you have any questions on Brexit, or anything with your account. Join our Q&A Live Monday to Friday, 9am to 5pm.
Or, check out our Brexit Hub for the latest information, and sign up to our Brexit Webinar.